SMB owners need to wear different hats each day as they juggle with varied responsibilities of their business. As a result, time remains extremely precious for them. In order to maximize the efficiency of their business, SMB owners must focus on the strategic parts of their business such as customer service, and raising capital and take the help of trusted service providers that offers tailored end to end bookkeeping and payroll services. A comprehensive industry specific bookkeeping solution such as Grocery store bookkeeping solution, restaurant bookkeeping solution, retail store accounting solution, hotel accounting solution and healthcare accounting solution offered by outsourcing firms enables SMB owners such as Grocers, restaurant operators, hotel/motel owners to analyze the expenditures and revenue generated by their business over a specific period of time. This granular visibility into their financials enables SMB owners to reduce inefficiencies and improve profitability of their business. Additionally, outsourcing the accounting tasks also simplifies the process of maintaining up-to-date financials that can be cross-checked with the budget to ensure that the business is not overspending. It also helps in identifying the instances of under-spending enabling the SMB owners to reduce inefficiencies and enhance productivity.
The four bookkeeping tasks that an SMB owner should consider outsourcing are as follows:
1. Accounts Receivable
The amount or value of the products and services you sell doesn’t truly contribute to your business until you get paid for them. Significantly, for SMB owners bookkeeping tasks such as accounts receivable management consumes the considerable time of their human resources, ultimately affecting the efficient functioning of their business. As a result, it is always advisable to outsource accounts receivable process of your business to a trusted service provider that offers customized industry specific bookkeeping and payroll services through its next gen technological platforms enabling SMB owners to handle their receivables efficiently by optimizing the accounts receivables process of their business.
2. Accounts Payable
For the small business organizations the proper cash inflow and outflow is extremely critical as they have limited cash sources. Thus, if the accounts payable process is not managed properly or if there are any delay in the payments then the company gets penalized with huge penalties. Outsourcing Accounts payable enables timely payment of all the invoices on or before the last due date as per the company policy. In addition to this, checking and cross verifying the accuracy of all the due invoices becomes much easier. Any new improvements in the process can also be incorporated immediately. Consequently, the company leverages best accounts payable services offered by trusted service providers at a lower cost. For example: Hotel accounts payable outsourcing services helps in re-engineering the Accounts payable workflow through enhanced adoption of automation capabilities offered by outsourcing firms.
3. Account/Bank Reconciliation
Accounts reconciliation is the process of validating an organization’s financial transactions in order to detect discrepancies, if any and to reconcile the same. Below are some of the
advantages of an efficient account/ bank reconciliation process:
- Identifying fraud
- Discovering unauthorized entries
- Identifying discrepancies
For high-volume transactional businesses such as retailers and restaurants, it can also be a
struggle to verify cash deposits, credit card deposits, and gift cards. By outsourcing,
account/bank reconciliation tasks to trusted service providers that offers tailored Retail store accounting services or Restaurant accounting solutions make the process more convenient and efficient.
4. Financial Reporting
Financial reporting and analysis involves the preparation of different kind of reports and the analysis of the data to determine the financial health of a company. Efficiency in financial reporting is important for any organization to gain a competitive advantage. Outsourcing financial reporting services to an expert and specialized service provider can give your organization access to the following benefits –
- Develop a reliable reporting system for accurate analysis
- Build awareness of cash position, profit and other lifelines
- Understand the financial foundations of your business
- Avoid crises and plan for future growth
- Save on the time involved in analyzing and preparing financial reports
- Avoid spending money on costly financial reporting software
- Improved and efficient decision making
Professional outsourcing firms have capabilities to offer industry specific financial reporting solutions like Quatrro has developed a customized Restaurant statements reporting solution which helps restaurant owners to gain better financial transparency, and enhances quality and controls with “drill down” ability.
Many SMBs have a misconception that by outsourcing they lose control over their financial operations. In fact, outsourcing enables SMB owners to exercise more stringent control on their accounting processes. Besides, outsourcing firms use state-of-the-art technology for their bookkeeping operations and are therefore more efficient. Consequently, outsourcing these four tasks can always help in boosting the productivity and saving cost along with your precious time engagements enabling you to focus on strategic outcomes of your business.
Quatrro brings decades of experience in helping small and medium businesses like you enhance efficiencies of their financial processes, reduce revenue leakage due to inappropriate cash collection practices and improve bottom-line growth. If you are an SMB owner and is looking to outsource any of the above four bookkeeping tasks, reach out to us today.